Imagine your income protected and safe.

1. Imagine your income protected and safe.

2. Topics • You have much to protect. (Probably more than you realize.) • What are some of the threats facing your financial security? (You may be surprised.) • How you can choose to protect your future today. • There are distinct advantages to you when you obtain income protection where you work. • An overview of the kind of disability income insurance you can obtain at work. • One more important consideration

3. You have much to protect - probably more than you realize. Return to Table of Contents

4. If you are like most people, your salary makes your lifestyle possible. If you were to estimate, as of today, do you know how much you might earn by the time you retire? It’s a fun exercise and a valuable one.

5. Bob, the engineer. Bob is 35 years old and receives $6,000 a month in salaried income. If his salary stays at the same level throughout his working life, at retirement* he will have generated $2,160,000 in salaried income for himself and his family. * Assumes retirement at age 65.

6. $ 2,160,000 $ 4,320,000 Bob’s future earnings without increases or bonuses Bob’s future earnings with increases or bonuses How much Bob has to protect. With increases and bonuses, Bob’s future earnings could easily double. In that case he would have $4,320,000 to protect.

7. $ Your retirement age Your age now Your monthly salary Your total earnings until your retirement age How much will you have to protect? This figure will likely be substantially larger if you receive annual increases or bonuses. - x x 12 =

8. What are some of the threats facing your financial security? Return to Table of Contents

9. Unexpected costs. Many people greatly underestimate how high their medical expenses may become during a long-term disability. There may be many unexpected costs. The chart at right shows a typical financial picture during disability.

10. ** *Individual Disability Experience Committee, Society of Actuaries, 2005. **Average Duration of Disability Lasting More Than 90 Days and beginning before age 65. Duration is measured from the start of disability to (at most) age 65. The length of disabilities. Disabilities that last more than 90 days often last for several years.* Could you manage financially if you were faced with such a disability? 20052

11. Disabilities have many causes. Most disabilities that interrupt earnings are caused by illnesses. Only about 10% of work disabilities are caused by accidents.* This example is provided only to show a breakdown of The Standard’s open claims above as of 9/30/09 without regard to the decision made on each claim. Having the conditions listed does not establish disability. Each claim is evaluated on its own merits and according to the terms of the policy. * U.S. Group Disability Rate and Risk Management Survey. JHA 2002.

12. Story of the 37 year-old Dad. A 37 year-old father of three injured his back when he moved the family television set. As a young man he never thought he would have to worry about disability. After being unable to work for four years, he said, “Not buying disability insurance was about the dumbest thing I’ve ever done.”* * Disability can wreck finances. Kathy M. Kristof. Los Angeles Times, October 14, 2007.

13. Story of the young mom on a business trip. A young mom on a business trip was struck by an SUV running a red light. Married, with two sets of twins, she faced multiple surgeries and months of bed rest. As her out-of-pocket living expenses nearly tripled with unanticipated expenses, her disability insurance provided a steady stream of income to her family.

14. Story of the young mom on a business trip, (cont’d) Two years later, she returned to work full time. She looked back thankful that she had made the decision to buy disability income insurance. “We did not lose our home, and I did not need to take money from our future financial goals, such as our children’s education... and retirement.”* * Practice what you preach. Advisor Today, January 2006.

15. How you can choose to protect your future today. Return to Table of Contents

16. Consider the individual disability income insurance plan offered by your employer. Individual disability income insurance provides monthly cash benefits in the event you are unable to generate an income due to a disabling illness or accident.

17. There are distinct advantages when you obtain income protection where you work. Return to Table of Contents

18. Guarantee standard issue Individual disability income insurance. When individual disability income insurance is offered at the workplace, it is usually available on a guarantee standard issue basis. Guarantee standard issue disability income insurance has several advantages over coverage you can find on your own.

19. The advantages of individual disability income insurance offered on a guarantee standard issue basis • Policies are issued regardless of • health status • age* • gender • so you will likely be able to obtain coverage for which you might not otherwise qualify. • Policies are discounted at premium rates you cannot obtain on your own. • The higher your income, the greater the benefit that may be available to you. • Bonuses, distributions and other incentive income are included in the total income figure used to calculate your eligible benefits. * Age is consider in determining the premium for each policy

20. An overview of the kind of individual disability income insurance you can obtain at work. Return to Table of Contents

21. Each policy includes: • A Guaranteed Renewable benefit • Total Disability Benefit • Waiver of Premium Benefit • Presumptive Total Disability Benefit • Survivor Benefit • Renewable for Life Benefit • Rehabilitation Benefit • Continuous Disability Benefit • Cosmetic or Transplant Surgery Benefit Available riders and features may vary by state.

22. Customizable protection. You can also customize your coverage* with optional riders.** • Residual Disability Rider • Supplemental Social Insurance Rider • Own Occupation Rider • Noncancelable Policy Rider • Catastrophic Benefit Rider • Indexed Cost of Living Rider • GI Rider (Pre-existing Conditions Amended) *Available Riders may vary by GI plan **Available riders and features may vary by state.

23. Ask you insurance representative. Ask your insurance representative to explain the details of this important insurance option to you.

24. One more important consideration Return to Table of Contents

25. One more important consideration: Who can you trust? The insurance carrier you choose is as important as the quality of the insurance protection you elect. As you consider which carrier you might trust with your financial security, it’s important to know the answers to these questions: • How does the company treat its customers at claim time? • How financially stable is the company? • Can you count on the company to be there when you need it? • What is its reputation?

26. The Standard • has been keeping its promises to its customers since 1906. • ranks among the top ten disability insurance companies in the nation. • rates 1st among its peers with high levels of customer service, a sound liquidity position and strong financial flexibility.1 • is rated by consumers as having higher than industry average satisfaction (between 92% and 95%) at claims time.2 Find out more about The Standard. 1. Peer Comparison: U.S. Specialty Employee Benefit Insurers. Standard & Poor’s Rating services. 2. JHA Claimant research. 2008.

27. For costs and details of coverage, including exclusions, reductions or limitations and the terms under which a policy may be continued in force, contact your insurance representative or Standard Insurance Company at 1000 Sixth Avenue, Portland, OR 97204, 800.247.6888.